Federal Minister for Economic Affairs and Energy Peter Altmaier said on Wednesday that the Eurozone's biggest economy would expand only 0.5% this year, after his team already cut the forecast in January by 0.8 percentage points to 1%. The report adds Germany's gross domestic product is seen growing by 1.5% in 2020.

The government attributed the downgrade mostly to trade friction between decision makers in the world's largest markets together with uncertainty regarding the United Kingdom's withdrawal from the European Union. The new WLTP standards for the automotive industry remained in the group of factors with the biggest downward pressures, while the ministry also cited low levels of water on the Rhine.

The inflation projection was set at 1.5% for 2019, to accelerate by another 0.3 points next year. Export figures were calculated at 2%, a cut by 0.7 points, and 3%, respectively. It compares to the expected rise in the value of shipments from abroad by 3.8%, down 0.2 points from the prior quarterly review, and 4%. Altmaier expressed opposition to material fiscal stimulus and suggested Germany should lower taxes and administrative costs.